The judgment underscores that non-disclosure of material evidence in administrative proceedings violates natural justice and renders the decision invalid.

O R D E R

Heard Mr. C.Prakasam, Learned Counsel for the Petitioner and Mr. P.Sathish, Learned Additional Government Pleader appearing for the First Respondent and Mr. L.P.Shanmugasundaram, Learned Counsel appearing for the Second Respondent and perused the materials placed on record, apart from the pleadings of the parties.

2. The Petitioner has filed this Writ Petition challenging the Order in Na.Ka.No. 1193/2016/C dated 20.12.2017 passed by the First Respondent in surcharge proceedings fastening liability on him as President of the Co-operative Society of the Second Respondent in the exercise of powers under Section 87 of the Tamil Nadu Co-operative Societies Act, 1983 (hereinafter referred to as 'the TNCS Act' for short), and to consequently direct the First Respondent to receive the finished dhoties and sarees from him and adjust the same for his liability in the aforesaid proceedings.

3. The primordial contention of Learned Counsel for the Petitioner is that the impugned order has been passed in pursuance of a report of inspection of the affairs of the Co-operative Society of the Second Respondent in terms of Section 82 of the TNCS Act without supplying its copy to the Petitioner, which vitiates it. In the Counter-Affidavit filed on 28.02.2018 by the First Respondent, it has been stated as follows:-

“6. As regard the averments contained in paragraph of 5 of the affidavit, it is submitted that based on the inspection report submitted by the inspection officer, the surcharge action was initiated. It is submitted that the Petitioner had not made any written request to furnish the a copy of the inspection report to the Petitioner, during the pendency of the surcharge proceedings. The Petitioner contention that he has requested for supply of a copy of inspection report is a belated reply as he had never asked for a copy of report at any one of five visits as per the summons issued to him. It is submitted that the Petitioner, having accepted the liability for the loss caused to the Government before the inspection officer, he cannot plead that he was not received a copy of the inspection report. This averment is a time delaying tactics adopted by the Petitioner. It is submitted that the surcharge order passed by the First Respondent is correct and legally sustainable.”

It is evident therefrom that the said inspection report has not been furnished to the Petitioner in the surcharge proceedings. It is needless to point out here that any administrative decision entailing adverse civil consequences must be made consistently with the rules of natural justice by informing the person concerned of the case against him with evidence in support thereof and after giving an opportunity of being heard for meeting or explaining such evidence.

4. It would be beneficial in this context to refer to decision of the Hon'ble Supreme Court of India in the decision in Deepak Ananda Patil -vs- State of Maharashtra (Order dated 04.01.2023 in Civil Appeal Nos. 88-89 of 2023), which reads as follows:-

“20. It is a well-established principle of administrative law that an adjudicatory body cannot base its decision on any material unless the person against whom it is sought to be utilized has been apprised of it and given an opportunity to respond to it. Surveying the precedents extensively, MP Jain & SN Jain's treatise on Principles of Administrative Law notes that:

“If the adjudicatory body is going to rely on any material, evidence or document for its decision against a party, then the same must be brought to his notice and he be given an opportunity to rebut it or comment thereon. It is regarded as a fundamental principle of natural justice that no material ought to be relied on against a party without giving him an opportunity to respond to the same. The right of being heard may be of little value if the individual is kept in the dark as to the evidence against him and is not given an opportunity to deal with it. The right to know the material on which the